Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 53.36

-1.9%

9:30 AM EST

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From: pcstel	11/21/2022 10:20:52 PM
	Read Replies (1) of 29986

The Terms "Apple will reimburse 95% of the approved capital expenditures Globalstar makes in connection with the new satellites described therein (to be paid on a straight-line basis over the useful life of the satellites)" Useful life begins after on-orbit acceptance. So Globalstar funds the construction, launch and insurance up front at probably 12% interest. They are looking for $500MM. That is $60MM a year in coupon. Say useful live is 15 years. So three years interest (non-cash pay) at 12% (LIBOR is 5.5%) is $202MM until launch. Then Apple will repay 95% of the costs (not interest) on a straight-line basis over the 15 year useful life or 31MM a year. So in the three years before launch, just interest cost is equivelent to 6 years of payments. And of course, Apple can walk away at any point only liable for 95% the actual expenses incurred to date. With all this, they only get 18 satellites? So 8 planes with only 2 satellites per plane and a spare per plane?

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